HomeMy WebLinkAbout2000-02-08 - AGENDA REPORTS - SCRDA OLD TOWN NEWHALL (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
February 8, 2000
OLD TOWN NEWHALL REDEVELOPMENT UPDATE
Redevelopment Agency
RECOMMENDED ACTION
Receive staff report and comment.
BACKGROUND
On January 11, 2000 the City Council requested that staff update the
Redevelopment Agency regarding the progress of the Old Town Newhall
Redevelopment efforts.
• Financing
On July 8, 1997, the City of Santa Clarita Redevelopment Agency adopted The
Newhall Redevelopment Plan. The City's redevelopment consultants, GRC Inc.
estimated that the project area, approximately 850 acres, would generate $56,000 of
gross tax increment by its first year based on a 2% growth rate. Moreover, a 10%
growth rate was projected for the year 2000. After the required set -asides are
deducted, the anticipated cumulative net proceeds to the Agency by the end of the
Year 2000 was $174,254. However, there has been no confirmed tax increment
generated to date. Staff is concerned by this lack of increased property valuation
over the base year, further demonstrating its concerns that the area's size may be
too modest to catalyze significant improvements and activities that were outlined in
the Michael Freedman public participation process completed in 1996. In addition,
the Newhall Redevelopment Agency has outstanding promissory notes of
approximately $2,750,000. These funds are accruing interest at a rate of prime
minus one, and repayment is due to begin in 2002. The monies have been used for
the Fagade Improvement Program, Arts Matching Grant Program for facilities,
Newhall Street Faire, and Building Fee Assistance Program.
• Public Investments
Beyond the $2,750,000, the City has invested significant public resources other than
C.R.A. funds, for the construction and support of the following improvements in
Newhall:
SGR�A
RECEIVE ,t4d e e a-A..-
Agenda Report for 2/8/00
Page 2 of 3
NON CRA PR.OJF.V.TA TN NF.WRAT.T.
(*) Estimated annual program budgets.
• Redevelopment Agency Programs
Despite the non existence of tax increment, the City has retained its proactive
posture towards the revitalization of Newhall by allocating any available resources
we can identify to improve the quality of life in the area, including the formation of
the Newhall Redevelopment Committee. The N.R.C. is composed of seventeen
members and was instrumental in the creation of the Redevelopment Plan and is
actively involved with the implementation of revitalization programs, such as the
Fagade Improvement Program, currently underway.
The Fagade Improvement Program has contributed to the rehabilitation of the
shopping center at the southeast corner of Market Street and San Fernando Road,
which has been successful in attracting another quality sit down restaurant, El
Tracadero, and the Santa Clarita Repertory Theater which recently opened. The
City has also supported and contributed funds for the development of the Canyon
Theater Guild, which is currently under construction, renovating two existing
structures down the block from the Repertory Theater. Staff has recently begun to
experience an increased interest in the use of the Fagade Program and Outdoor
Screening Program, as several property owners have requested the services of the
Agency's hired "main street type architect" to develop conceptual plans which are
underway. The new owner of the former "Allards Cleaners" is expected to begin
construction immediately on their plans approved by the Redevelopment Committee.
Staff initiating and maintaining dialogue on a daily basis with the respective
businesses and property owners is crucial in effecting change in the area.
The Redevelopment Committee, through its Marketing Sub -Committee, is expected
to explore other marketing activities and events, such as the Newhall Street Fair
Project Name
Cost
A.
Jan Heidt Metrolink Station
$6.18 million
B.
Railroad Avenue Improvements
$3.01 million
C.
Curbs, Gutters and Sidewalks
$4.6 million
D.
Community Center Start Up Costs
$50,000
E.
Community Center Annual Operation Costs
$330,000
F.
Creekside Park
$250,000
G.
I Newhall Creek Protection
$115,000
H.
Arcadia Street Improvements Stud
$50,000
I.
Senior Center
$48,000
J.
L.A. County Service Center
$31,000 *)
K.
Dental Lab
$6,250
TOTAL
$14.7 million
(*) Estimated annual program budgets.
• Redevelopment Agency Programs
Despite the non existence of tax increment, the City has retained its proactive
posture towards the revitalization of Newhall by allocating any available resources
we can identify to improve the quality of life in the area, including the formation of
the Newhall Redevelopment Committee. The N.R.C. is composed of seventeen
members and was instrumental in the creation of the Redevelopment Plan and is
actively involved with the implementation of revitalization programs, such as the
Fagade Improvement Program, currently underway.
The Fagade Improvement Program has contributed to the rehabilitation of the
shopping center at the southeast corner of Market Street and San Fernando Road,
which has been successful in attracting another quality sit down restaurant, El
Tracadero, and the Santa Clarita Repertory Theater which recently opened. The
City has also supported and contributed funds for the development of the Canyon
Theater Guild, which is currently under construction, renovating two existing
structures down the block from the Repertory Theater. Staff has recently begun to
experience an increased interest in the use of the Fagade Program and Outdoor
Screening Program, as several property owners have requested the services of the
Agency's hired "main street type architect" to develop conceptual plans which are
underway. The new owner of the former "Allards Cleaners" is expected to begin
construction immediately on their plans approved by the Redevelopment Committee.
Staff initiating and maintaining dialogue on a daily basis with the respective
businesses and property owners is crucial in effecting change in the area.
The Redevelopment Committee, through its Marketing Sub -Committee, is expected
to explore other marketing activities and events, such as the Newhall Street Fair
Agenda Report for 2/8/00
Page 3 of 3
and Festival of Holidays Celebration that the City has invested in to promote the
area.
Staff is maintaining continuous dialogue with developers and potential businesses
as well as exploring the location of a Farmer's Market for the area.
• Summary
1. The Public financial investments that have occurred in Newhall to date, are not
because of redevelopment financing, but the direct result of City investments in
the area.
2. Because the Michael Freedman Revitalization Plan required significant
redevelopment funding, which has not been forthcoming, the expectations of the
plan are not being realized due to the reduced Redevelopment boundary
definition settlement.
3. The City continues to make steady progress through the Redevelopment Agency
through its support of the Redevelopment Committee and our ongoing work with
individual property owners and merchants. We are continuing to make steady
progress even without the significant financial resources that redevelopment can
provide. Based on the lack of the financial resources of redevelopment, progress
will continue to be characterized as less dramatic and more incremental in
nature.
ALTERNATIVE ACTION
No alternative action is recommended.
FISCAL IMPACT
There are no fiscal impacts associated with this report.
AVAV
ms:ccagenda/22200/2800.doc